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Business Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
The Company's business segments are Aluminum Extrusions, PE Films and Flexible Packaging Films. Aluminum Extrusions, also referred to as Bonnell Aluminum, produces high-quality, soft-alloy and medium-strength custom fabricated and finished aluminum extrusions for the building and construction, automotive and transportation, consumer durables, machinery and equipment, electrical and renewable energy, and distribution markets. PE Films is composed of surface protection films, polyethylene overwrap films and films for other markets. Flexible Packaging Films is comprised of the Company’s polyester films business, Terphane Holdings LLC (“Terphane”).
The Company’s reportable segments are based on its method of internal reporting, which is generally segregated by differences in products. Accounting standards for presentation of segments require an approach based on the way the Company organizes the segments for making operating decisions and how the chief operating decision maker (“CODM”) assesses performance.
Earnings before interest, taxes, depreciation and amortization from ongoing operations (“EBITDA from ongoing operations”) is the measure of profit and loss used by the CODM (Tredegar’s President and Chief Executive Officer) for purposes of assessing financial performance. In the fourth quarter of 2019, the Company concluded that “EBITDA from ongoing operations,” instead of “operating profit from ongoing operations,” is the most relevant metric for measuring segment financial performance. This change resulted in a revision of the Company’s segment disclosures for all periods to report EBITDA from ongoing operations as the measure of segment financial performance. The Company uses sales less freight (“net sales”) as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM.
Information by business segment and geographic area for the last three years is provided in the segment tables below. There were no accounting transactions between segments and no allocations to segments.
Net Sales
(In thousands)202020192018
Aluminum Extrusions$455,711 $529,602 $573,126 
PE Films139,288 133,807 127,708 
Flexible Packaging Films134,605 133,935 123,830 
Total net sales729,604 797,344 824,664 
Add back freight25,686 28,980 27,170 
Sales as shown in consolidated statements of income$755,290 $826,324 $851,834 
Refer to Notes to Financial Tables that follow these tables.
EBITDA from Ongoing Operations
(In thousands)202020192018
Aluminum Extrusions:
Ongoing operations:
EBITDA$55,137 $65,683 $65,479 
Depreciation & amortization (d)(17,403)(16,719)(16,866)
EBIT37,734 48,964 48,613 
Plant shutdowns, asset impairments, restructurings and other (a)(3,506)(561)(505)
Goodwill impairment charge(13,696)— — 
Trade name accelerated amortization (d)— (10,040)— 
PE Films:
Ongoing operations:
EBITDA45,107 41,133 32,404 
Depreciation & amortization(6,762)(5,860)(6,201)
EBIT38,345 35,273 26,203 
Plant shutdowns, asset impairments, restructurings and other (a)(1,974)(733)(186)
Flexible Packaging Films:
Ongoing operations:
EBITDA30,645 14,737 11,154 
Depreciation & amortization(1,761)(1,517)(1,262)
EBIT28,884 13,220 9,892 
Plant shutdowns, asset impairments, restructurings and other (a)(18)— (45)
Total85,769 86,123 83,972 
Interest income44 66 146 
Interest expense2,587 4,051 5,702 
Gain (loss) on investment in kaléo accounted for under the fair value method (a)(60,900)28,482 30,600 
Loss on sale of Bright View (f)(2,299)— — 
Loss on sale of investment property (a)— — (38)
Unrealized loss on investment property (a)— — (186)
Stock option-based compensation expense2,161 4,132 1,156 
Corporate expenses, net (a)42,912 34,482 27,265 
Income (loss) from continuing operations before income taxes(25,046)72,006 80,371 
Income tax expense (benefit) (a)(8,213)13,545 18,807 
Income (loss) from continuing operations(16,833)58,461 61,564 
Income (loss) from discontinued operations, net of tax (a)(58,611)(10,202)(36,722)
Net income (loss)$(75,444)$48,259 $24,842 
Refer to Notes to Financial Tables that follow these tables.
Identifiable Assets
(In thousands)20202019
Aluminum Extrusions$244,560 $265,027 
PE Films119,013 124,269 
Flexible Packaging Films66,453 74,016 
Subtotal430,026 463,312 
General corporate71,508 109,655 
Cash and cash equivalents (b)11,846 31,422 
Discontinued operations1,490 108,279 
Total$514,870 $712,668 
 Depreciation and AmortizationCapital Expenditures
(In thousands)202020192018202020192018
Aluminum Extrusions$17,403 $26,759 $16,866 $10,260 $17,855 $12,966 
PE Films6,762 5,860 6,201 6,024 8,567 2,523 
Flexible Packaging Films1,761 1,517 1,262 4,959 8,866 5,423 
Subtotal25,926 34,136 24,329 21,243 35,288 20,912 
General corporate (e)520 186 163 200 223 427 
Discontinued operations5,511 9,962 9,312 1,912 15,353 19,475 
Total$31,957 $44,284 $33,804 $23,355 $50,864 $40,814 
Net Sales by Geographic Area (c)
(In thousands)202020192018
United States$530,243 $593,599 $636,968 
Exports from the United States to:
Asia80,217 82,342 74,499 
Canada18,024 15,022 16,467 
Europe5,440 5,752 3,909 
Latin America2,169 4,135 991 
Operations outside the United States:
Brazil93,511 96,274 85,868 
China— 220 5,962 
Total$729,604 $797,344 $824,664 
 Identifiable Assets
by Geographic Area (c)		Property, Plant & Equipment,
Net by Geographic Area (c)
(In thousands)2020201920202019
United States$363,106 $403,366 $132,268 $140,609 
Operations outside the United States:
Brazil49,157 41,890 15,588 15,348 
China17,763 18,056 16,245 16,210 
General corporate71,508 109,655 2,444 1,389 
Cash and cash equivalents (b)11,846 31,422 n/an/a
Discontinued operations1,490 108,279 — 69,334 
Total$514,870 $712,668 $166,545 $242,890 
Refer to Notes to Financial Tables that follow these tables.
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market but paid by customers directly to PV. Amounts associated with this
intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $35.1 million in 2020, $32.1 million in 2019 and $28.9 million in 2018.
Net Sales by Product Group
(In thousands)202020192018
Aluminum Extrusions:
Nonresidential building & construction$253,126 $272,729 $289,572 
Consumer durables44,167 57,607 66,416 
Automotive35,895 46,461 48,037 
Machinery & equipment30,649 38,657 41,899 
Distribution28,339 34,753 40,924 
Residential building & construction40,049 43,554 43,943 
Electrical23,486 35,841 42,335 
Subtotal455,711 529,602 573,126 
PE Films:
Surface protection films109,097 103,893 98,126 
Packaging22,700 22,542 22,310 
LED-based products7,491 7,372 7,272 
Subtotal139,288 133,807 127,708 
Flexible Packaging Films134,605 133,935 123,830 
Total$729,604 $797,344 $824,664 
(a)See Notes 1, 2, 3, 4 and 17 for more information on losses associated with plant shutdowns, asset impairments and restructurings, unusual items, gains or losses from sale of assets, gains or losses on an investment accounted for under the fair value method and other items.
(b)Cash and cash equivalents includes funds held in locations outside the U.S. of $9.4 million and $8.9 million at December 31, 2020 and 2019, respectively.
(c)Information on exports and foreign operations are provided on the previous page. Export sales relate almost entirely to PE Films. Operations in China relate to PE Films. Operations in Brazil relate to Flexible Packaging Films.
(d)Depreciation and amortization for Aluminum Extrusions in 2019 excludes $10.0 million for accelerated amortization of trade names as a result of a rebranding initiative (see Note 8 for more information)
(e)Corporate depreciation and amortization are included in Corporate expenses, net, on the EBITDA from ongoing operations table above.
(f)In December 2020, the Company entered into a definitive agreement and completed the sale of Bright View. See Note 2 for more details.